Journal of Applied Finance & Banking

Factors that Affect Bank Risk in Commercial Banks that Are Publicly Listed

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  • Abstract


    This study aims to determine the effect of Net Interest Margin (NIM), Non-Performing Loan (NPL), oil price, exchange rate, market power, and female BOD gender on bank risk in go public commercial banks listed on the IDX and KLSE (2009-2019). In this study, the sampling technique used was purposive sampling technique which resulted in 32 banks. The secondary data used is obtained from financial reports published on the official IDX and IDX websites. The data analysis method used in this research is panel data regression analysis. The results showed that the total assets variable affects NIM, NPL, Oil Prices, Exchange Rates, Market Power, and Female BOD Gender on Bank Risk in Go Public Commercial Banks listed on the IDX and KLSE. The regression test results can be concluded that the constant coefficient value of -0.770544 means that if the variable NIM (X1), NPL (X2), Exchange Rate (X3), Oil Price (X4), Market Power (X5), and Female BDO Gender (X6) is zero, then the amount of Bank Risk is -0.1770544.


    JEL classification numbers: C31, E51, G21, J16.

    Keywords: Bank, Profitability, Total Assets, Risk.